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Full Disclosure 2016

ArcelorMittal South Africa LimitedUpdated

Key questions shareholders should ask

Summary of updated findings

The 2014/2015 NECER makes reference to ArcelorMittal’s Vereeniging facility, and states that the DEA “is in the process of taking the appropriate enforcement action” pursuant to receipt of representations from ArcelorMittal.1 No update on the status of this enforcement action is provided in the 2015/2016 NECER.

In relation to ArcelorMittal’s Newcastle Works, the 2014/2015 NECER states that:

A response to the Section 31H notice was received on 11 April 2014.

On 23 July 2014, a combined pre-compliance notice and pre-directive was issued to the facility. Representations were received on 22 September 2014. Further enforcement action is currently underway.2

The 2015/2016 NECER states that the DEA “was not satisfied with the representations received in response to the combined PCN and pre-directive.”3 The 2015/2016 NECER goes on to say that the DEA decided to amend the original pre-compliance notice, and that the “amended combined PCN and pre-directive was issued on 6 August 2015.” Once again, the DEA was not satisfied with the representations received from the facility, and accordingly a final combined compliance notice and directive was issued on 7 December 2015. According to the 2015/2016 NECER, ArcelorMittal applied for the suspension of this notice and submitted an objection. Both the suspension application and objection were however dismissed by the Director-General and Minister of Environmental Affairs.4

ArcelorMittal’s 2015 Integrated Annual Report refers to the December 2015 “compliance notice/directive” received by Newcastle Works which “demanded that the disposal of waste into the BOF slag disposal site be immediately halted and that an independent consultant be appointed within five working days to conduct studies into 15 identified areas within the works … Newcastle complied with the notice within the required timeframes…”5 ArcelorMittal’s 2015 Integrated Annual Report also refers to the fact that Newcastle submitted an “appeal/objection” in respect of the December 2015 compliance notice and directive, stating that the appeal/objection “aims to overturn the moratorium on the sale of BOF slag products – which the company holds should not be viewed as waste – and on some of the instructions received relating to the disposal of waste into the BOF slag disposal site.”6

The 2015 Integrated Annual Report also references a Green Scorpion inspection at the Pretoria Works. ArcelorMIttal states that “no report was received and in our opinion, compliance levels were good”.7

The Report also states:

In February, we received a pre-compliance notice from the Gauteng Department of Agriculture and Rural Development (GDARD) on an inspection conducted at Vanderbijlpark in the previous year. This pre-compliance notice detailed certain instances of regulatory non-compliance, particularly relating to emissions and by-product spillages. A response was compiled and detailed corrective measures and engagement took place throughout the year with the GDARD regarding progress made with the required improvements. All corrective measures, with the exception of the sinter plant abatement, were implemented by the end of 2015. The sinter plant improvements relate to fugitive dust abatement at a crushing and screening facility where 50% of the work was completed.8

  1. National Environmental Compliance and Enforcement Report 2014/2015, at p44.
  2. National Environmental Compliance and Enforcement Report 2014/2015, at p44.
  3. National Environmental Compliance and Enforcement Report 2015/2016, at p51.
  4. National Environmental Compliance and Enforcement Report 2015/2016, at p51.
  5. ArcelorMittal South Africa Integrated Annual Report 2015, at p57.
  6. ArcelorMittal South Africa Integrated Annual Report 2015, at p57.
  7. ArcelorMittal South Africa 2015 Integrated Annual Report, at p57.
  8. ArcelorMittal South Africa 2015 Integrated Annual Report, at p57.